Category Archives: Uncategorized

For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. If you do not pay enough tax by the due date of each payment period, you may be charged a penalty even if you are due a refund when you file your income tax return… Read More »

What is the first day to file my tax return in 2016? Many people want to get a jump on filing their 2015 taxes in 2016. Others may want to claimed the earned income tax credit as soon as possible in 2016 by filing their taxes early. The choice is up to the taxpayer when… Read More »

Before you file your return, review it and make sure it is complete and correct. The following checklist can help you avoid common mistakes: Errors Filing Taxes Electronically Did you consider filing your taxes electronically? When filing your taxes electronically, you can avoid many common errors, which are corrected by the computer program. Depending on your income,… Read More »

The income tax treatment of annuities under § 72 is similar to the taxation of life insurance proceeds received by a beneficiary under a settlement option in that the installment payments in both cases contain return-of-capital and income components. In the case of an annuity contract, the amount paid to the insurer, whether as a… Read More »

For returns and claims for refunds prepared after May 2007, a tax return preparer who prepares a return or claim for refund may be liable for a penalty in the amount of $1,000 if a position is taken on the return or claim for refund and the preparer knew, or reasonably should have known, of… Read More »

Interactive Tax Assistant (ITA) The ITA tool is a tax law resource that takes you through a series of questions and provides you with responses to tax law questions. Simply answer the questions and click the “Continue Button” to progress to the next question screen. When you reach the response screen, you have the option… Read More »

What information do immigrants need to know about getting an ITIN? If you earned income in the United States as a resident, citizen or visitor, you must file a tax return. If you can not obtain a Social Security number, you will need a Personal Identification Number (ITIN) to file your taxes and get important loans.… Read More »

Generally, taxpayers may deduct casualty and theft losses relating to your home, household items and vehicles on their federal income tax return. The IRS would like taxpayers who experience certain types of major personal casualties recover some of their losses through tax savings. If a fire, theft, vandalism, earthquake, storm, floods, terrorism, or similar event damages… Read More »

Question: If I were to buy $1000 of stock, and it went up to $2000 in value, I would be able to donate the stock, claim a $2000 deduction, and report no capital gains. Let’s say now that I purchase $1000 worth of publically traded stock options on the market. They go up to $2000… Read More »